French game development tax breaks extended by EU

The European Commission has renewed the video game tax incentives scheme in France, after the tax relief expired earlier this year and was left in limbo. It was not clear whether officials would reinstate the tax relief for French game developers, as there was apparently discussion regarding whether tax benefits were distorting the market by giving an unfair advantage over other EU countries. However, the commission has now officially extended the deal, once again granting French developers a 20 percent tax rebate, subject to studios being able to prove that their projects are culturally relevant. The tax measures have been put in place until December 31, 2017. Heavy Rain developer Quantic Dream's co-CEO Guillaume de Fondaumiere was one of the biggest supporters of the tax breaks, and is also chairman of the European Games Developer Federation. He welcomed the news, stating that it was an important decision for Europe as a whole. "I hope that this extended window will now encourage other countries such as the United Kingdom to quickly put in place similar measures," he said, referring to tax breaks that are currently being talked over in the UK. "Through this decision, the Commission has also confirmed the legitimacy of games as a form of cultural expression, putting video games on equal footing with films or books," he continued. Today's decision by the EU means that the UK Government now has the green light to introduce tax breaks as soon as possible.